ONDC Secures ₹220 Crore from Zoho, Uber, Paytm and BSE Technologies to Accelerate Open Commerce Growth

Published: June 2026

India's Open Network for Digital Commerce (ONDC) has raised ₹220 crore in fresh capital from a strategic consortium that includes Zoho, Uber, Paytm, and BSE Technologies, marking a significant milestone in the evolution of India's open digital commerce ecosystem.

The funding, disclosed through recent regulatory filings, represents the first tranche of ONDC's broader ₹430 crore fundraising plan and signals growing confidence among technology and financial ecosystem players in the government's vision of creating an open, interoperable alternative to traditional e-commerce marketplaces.

The investment comes at a time when ONDC is expanding beyond its initial pilot phase and scaling across multiple categories including retail, food delivery, mobility, fashion, grocery, and hyperlocal commerce.

A Strong Vote of Confidence in Open Commerce

Unlike conventional e-commerce platforms that operate as closed marketplaces, ONDC functions as an open network that connects buyers, sellers, logistics providers, and payment partners through a common protocol.

This approach enables sellers to be discovered across multiple buyer applications without having to separately list and manage products on each platform. The model is designed to increase competition, reduce platform dependency, and create a more inclusive digital commerce ecosystem.

The participation of major technology companies such as Zoho, Uber, and Paytm is particularly noteworthy because their involvement extends beyond financial investment.

• Zoho brings access to millions of businesses already using its software ecosystem, creating opportunities for faster MSME onboarding.
• Uber can strengthen ONDC's logistics and delivery infrastructure through its extensive mobility and last-mile delivery network.
• Paytm contributes payment expertise and a large digital consumer base that can help drive buyer-side adoption.
• BSE Technologies adds institutional credibility and technology support to the growing ecosystem.

According to ONDC leadership, the funding reflects increasing trust among industry stakeholders in the long-term potential of the open-network commerce model.

Why This Funding Matters

India's digital commerce market is expected to grow rapidly over the next decade. However, a significant portion of online transactions continues to be concentrated among a few large marketplace operators.

ONDC was launched to address this challenge by creating a network where commerce participants can transact across platforms in a manner similar to how UPI enables interoperability between banks and payment applications.

The newly raised capital is expected to be utilized for:

• Strengthening core network infrastructure
• Improving dispute resolution mechanisms
• Enhancing technology and scalability
• Expanding seller onboarding initiatives
• Supporting growth across high-frequency commerce categories
• Improving overall network reliability and transaction processing

Industry experts believe these investments will be critical as ONDC prepares to handle significantly higher transaction volumes and onboard more merchants, logistics partners, and buyer applications.

Strategic Timing for ONDC

The funding arrives at a crucial stage in ONDC's development journey.

Over the past few years, the network has attracted participation from retailers, brands, logistics providers, fintech companies, and technology service providers. As adoption increases, ONDC is shifting its focus from ecosystem creation to ecosystem scale.

The additional capital provides the operational runway needed to accelerate network expansion while improving the user experience for both buyers and sellers.

Market observers note that the success of ONDC could have a long-term impact on how digital commerce operates in India. By reducing platform lock-in and enabling interoperability, ONDC has the potential to create a more competitive environment where businesses compete primarily on product quality, pricing, customer service, and delivery efficiency.

What It Means for Sellers and Brands

For sellers, manufacturers, retailers, and D2C brands, the latest funding round is an encouraging sign that ONDC's ecosystem continues to mature.

As more buyer applications, logistics providers, and technology partners join the network, businesses may gain access to broader customer reach without depending exclusively on a single marketplace.

The investment also reinforces confidence among merchants evaluating ONDC as part of their long-term digital commerce strategy.

Looking Ahead

With ₹220 crore already secured and a total fundraising target of ₹430 crore, ONDC is entering a new phase of growth focused on scale, infrastructure, and ecosystem development.

The participation of companies such as Zoho, Uber, Paytm, and BSE Technologies demonstrates that industry leaders increasingly view open commerce as a transformative opportunity for India's digital economy.

If ONDC succeeds in replicating for commerce what UPI achieved for payments, the latest funding round may be remembered as an important step in building the next generation of India's digital public infrastructure.

Key Highlights

• ONDC has raised ₹220 crore in fresh funding.
• The funding is part of a larger ₹430 crore fundraising plan.
• Investors include Zoho, Uber, Paytm, and BSE Technologies.
• The capital will support network expansion, technology upgrades, and seller adoption.
• ONDC aims to create an open and interoperable digital commerce ecosystem similar to how UPI transformed digital payments.
• The funding signals growing institutional confidence in India's open-commerce model.

About Costbo

Founded by Mr. Eswar and Mr. Ananth, with nearly 20 years of technology experience, Costbo is a leading ONDC seller platform powering India’s open digital commerce ecosystem. Costbo is among the first ONDC 1.2.0 certified seller platforms, enabling brands and sellers to sell on ONDC with fast onboarding, lower costs, and full operational control.

Ready to grow on ONDC? Start your journey with Costbo today.

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